BUTTER MARKET.

Shannon News, 2 September 1927, Page 3

BUTTER MARKET.

ADVANCE TO 178/-. A BKIGIIT OUTLOOK. ' AUCKLAND, August 31. For the first time in over a year New Zealand butter has commanded 178 s per cwt. on the London market, this being an advance of 4s on the highest recent quotations. Although some of the cabled quotations received by city firms to-day did not report quite so great a rise in values, all recorded a firming market and improved prices. The outlook is most reassuring. Apart from normal trade causes, such as waning production in the Northern Hemisphere, which were expected to react to the benefit of New Zealand dairying about this time, there is the liberal buying of Canada. That Dominion, it appears to experts in the butter trade, has adopted the practice of exporting far more of her flush production than usual and when it is exhausted buying in fresh butter for home consumption from Australia and New Zealand. The principal of a city dairy exporting firm observed to-day that, if Canada pursued this policy to any ’great extent, it would have a markedly beneficial effect upon New Zealand in our season of maximum production:

Australia, too, has of late been a good customer of New Zealand and even if the drought in the Commonwealth has broken and future orders are restricted in consequence, Canada has stepped into the breach and the Home market itself in its healthier tone puts a rosier hue on the future outlook.

One daily company, it was reported in the city to-day, had just accepted an offer of Is for its output from October to April. The most liberal of the'cabled reports received from London in Auckland to-day was that of the Amalgamated Dairies, Ltd., which said that the butter market was firming, New Zealand finest salted touching 178 s and Danish 1755. The Danish was probably an f.o.b. figure.